Lytton Commission, which is investigating the blast point of the railway.

The Lytton Report contained an account of the situation in Manchuria before September 1931, describing the unsatisfactory features of the Chinese administration and giving weight to the various claims and complaints of Japan. It then proceeded with a narrative of the events in Manchuria subsequent to September 18, 1931, based on the evidence of many participants and on that of eyewitnesses. It devoted particular attention to the origins and development of the State of Manchukuo, which had already been proclaimed by the time the Commission reached Manchuria. It also covered the question of the economic interests of Japan both in Manchuria and China as a whole, and the nature and effects of the Chinese anti-Japanese boycott. Russian interests in the region were also mentioned. Finally, the Commission submitted a study of the conditions to which, in its judgment, any satisfactory solution should conform, and made various proposals and suggestions as to how an agreement embodying these principles might be brought about.

However the report did not directly address one of its chief goals: the cause of the Mukden Incident. Instead it simply stated the Japanese position (that the Chinese had been responsible) - with no comment as to the truth or falsity of the Japanese claims.[2] Although there was no doubt as to Japan's guilt among the five commission members,[3] Claudel (the French delegate) insisted that Japan not be portrayed as the aggressor.[4]

In spite of care to preserve impartiality between the conflicting views of China and Japan, the effect of the Report was regarded as a substantial vindication of the Chinese case on most fundamental issues. In particular, the Commission stated that the operations of the Imperial Japanese Army following on the Mukden incident could not be regarded as legitimate self-defense. Regarding Manchukuo, the Report concluded that the new State could not have been formed without the presence of Japanese troops; that it had no general Chinese support; and that it was not part of a genuine and spontaneous independent movement. Still, the report held that both China and Japan had legitimate grievances. Japan, it states, took advantage of questionable rights, and China obstructed by the exercise of her undoubted rights. The Geneva correspondent of the "Daily Telegraph" says: "The report, which was approved unanimously, proposes that China and Japan shall be given three months in which to accept or reject the recommendations. It is hoped that the parties will agree to direct negotiations."

The "Daily Telegraph" French correspondent says: "The report insists on the withdrawal of Japanese troops within the South Manchuria railway zone, and recommends the establishment of an organisation under the sovereignty of China to deal with conditions in Manchuria, taking due account of the rights and interests of Japan, and the formation of a committee of negotiation for the application of these and other recommendations." [5]

In September 1932, even before the official announcement of the findings of the Lytton Report on October 2, 1932 were made public, the Japanese government extended official diplomatic recognition to the puppet government of Manchukuo. When the findings of the Report were announced before the General Assembly of the League of Nations, and a motion was raised to condemn Japan as an aggressor in February 1933, the Japanese delegation led by ambassador Yosuke Matsuoka walked out. Japan gave formal notice of its withdrawal from the League of Nations on March 27, 1933.

In the end, the Lytton Report basically served to show the weaknesses of the League of Nations and its inability with enforcing its decisions. The situation was complicated by the length of time it took for the Lytton Commission to prepare its report, during which time, Japan was able to firmly secure its control over Manchuria and was thus able to reject the condemnation of the League with impunity.